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Is Applied Materials (AMAT) a Strong Growth Stock?
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The goal of many retail investors today is to be the first to catch the next big trend in growth investments. Historically, big tech companies, and recently, cryptocurrencies, have taken the investing world by storm, making it increasingly difficult to see through to the light that is subtle stocks with strong steady growth.
Semiconductor equipment, an industry many retail investors have never looked into, may provide the answer for those looking for a strong growth option.
Applied Materials (AMAT - Free Report) , a major wafer fabrication company, is taking the charge, and “B” grades for Growth and Momentum based on our Style Scores system show just how strong this company is. These factors, and the company’s strong record, combine to give Applied Materials an “A” overall VGM grade.
Now that we’ve shown you that Applied Materials is a well-rounded option, we can dive into why this could be the need-to-know pick for those seeking strong growth options.
Fundamentals
Most growth investors base their financial decisions on proven growth and momentum in previous quarters and years, as well as the promise of strong future growth.
For those who like to see proven results, Applied Material’s share prices have jumped from $53.04 to $58.47, or 10.2%, in the past 12 weeks. With it stock price having moved up 320% from where it was five years ago, it is easy to see why this steadily surging tech company appeals to investors looking for strong momentum.
To appease those on the other side of the coin, Applied Materials boasts a current-quarter earnings growth estimate of 43% and a current-year growth estimate of 35.5%.
Looking into its revenue stream and sales estimates, we continue to see strong signs of growth in the short and long run. Sales estimates for the current quarter are calling for growth of 25.5%, with next quarter estimates projecting 18.6% growth and full-year estimates calling for 19.6% improvement.
If this isn’t enough to convince you that the company is growing steadily and will continue to do so, one should consider that EPS growth for the next three to five years is expected to come in at an annualized rate 13.3%, a strong statistic for those seeking long-term investments.
Combine this with the company’s surprisingly low P/E ratio of 12.0 compared to the industry average 16.5, and we have a simultaneous great deal, something that is not usually seen with such growth options.
Meanwhile, earnings estimate revisions have been unanimously positive for the current and next quarter, with only one negative revision for the current year out of the seven total, showing strong analyst sentiment.
These factors help to push Applied Materials to a Zacks Rank #1 (Strong Buy), and make it an option or growth investors to seriously consider.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Is Applied Materials (AMAT) a Strong Growth Stock?
The goal of many retail investors today is to be the first to catch the next big trend in growth investments. Historically, big tech companies, and recently, cryptocurrencies, have taken the investing world by storm, making it increasingly difficult to see through to the light that is subtle stocks with strong steady growth.
Semiconductor equipment, an industry many retail investors have never looked into, may provide the answer for those looking for a strong growth option.
Applied Materials (AMAT - Free Report) , a major wafer fabrication company, is taking the charge, and “B” grades for Growth and Momentum based on our Style Scores system show just how strong this company is. These factors, and the company’s strong record, combine to give Applied Materials an “A” overall VGM grade.
Now that we’ve shown you that Applied Materials is a well-rounded option, we can dive into why this could be the need-to-know pick for those seeking strong growth options.
Fundamentals
Most growth investors base their financial decisions on proven growth and momentum in previous quarters and years, as well as the promise of strong future growth.
For those who like to see proven results, Applied Material’s share prices have jumped from $53.04 to $58.47, or 10.2%, in the past 12 weeks. With it stock price having moved up 320% from where it was five years ago, it is easy to see why this steadily surging tech company appeals to investors looking for strong momentum.
To appease those on the other side of the coin, Applied Materials boasts a current-quarter earnings growth estimate of 43% and a current-year growth estimate of 35.5%.
Looking into its revenue stream and sales estimates, we continue to see strong signs of growth in the short and long run. Sales estimates for the current quarter are calling for growth of 25.5%, with next quarter estimates projecting 18.6% growth and full-year estimates calling for 19.6% improvement.
If this isn’t enough to convince you that the company is growing steadily and will continue to do so, one should consider that EPS growth for the next three to five years is expected to come in at an annualized rate 13.3%, a strong statistic for those seeking long-term investments.
Combine this with the company’s surprisingly low P/E ratio of 12.0 compared to the industry average 16.5, and we have a simultaneous great deal, something that is not usually seen with such growth options.
Meanwhile, earnings estimate revisions have been unanimously positive for the current and next quarter, with only one negative revision for the current year out of the seven total, showing strong analyst sentiment.
These factors help to push Applied Materials to a Zacks Rank #1 (Strong Buy), and make it an option or growth investors to seriously consider.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>